What has the recession taught us about operational risk and resilience?


Written by Phil on March 18, 2010 in Business Continuity.

Resilience and robustness are words which now play a dominant part in any discussion on business best practice. Whether the focus is financial performance, the supply chain or information technology (IT), resilience and robustness are now viewed as being absolutely crucial to the success of any organization.

While most commentators have focused on the need for financial resilience in the face of the increased risks associated with the economic downturn, the area of operational risk and resilience has been transformed dramatically as a result of the recession. Many businesses have experienced business problems not because they themselves have created a problem but because a partner or supplier has caused a problem through unavailability of resources and/or staff.

The Institute of Chartered Accountants in England and Wales (ICAEW) IT Faculty hosted an event in June 2009 in conjunction with SunGard Availability Services, exploring the theme of Risk and Resilience in a Recession. The discussion provided insights into businesses’ attitudes towards risk management and resilience planning, and the impact that the economic downturn has played in highlighting the range and severity of threats that CEOs, CFOs, CIOs and other business leaders need to prepare for and protect against.

In conjunction with this event, a poll of a group of Institute members examined how perceptions of operational risk have changed in light of the recession. For instance, resilience planning is no longer just about keeping the business up-and-running in the event of incidents such as a flood or fire. Now organisations are focusing on understanding the exact flow of information through the business; identifying which information is mission-critical and ensuring that they have resilient – and streamlined – infrastructure in place to access this information at all times, from any location.

See What has the recession taught us about operational risk and resilience? from Sungard Availability Services UK.

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